Asset Recovery Watch

ARW-9
Alstom S.A. (Malaysia)
France
Malaysia
2011
2011
Art.16
Criminal Prosecution and Restitution (in Switzerland)
MLAT
Article 53 Swiss Criminal Code payment of reparations
Completed
Assets Returned to Victim or Requesting Jurisdiction
Total restitution for International Committee of the Red Cross programs in Latvia, Malaysia and Tunisia was CHF 1 million.
Yes
Funds were transferred to the International Committee of the Red Cross for use in ICRC projects in Tunisia, Latvia and Malaysia. (Source: The Federal Authorities of the Swiss Confederation, "Criminal proceedings against Alstom entities are brought to a close," November 22, 2011.)

According to the November 2011 Summary punishment order imposed by the Swiss authorities, Alstom Network Schweiz AG (Swiss subsidiary of the French company Alstom S.A.) was convicted of not having taken all necessary and reasonable organizational precautions to precent bribery of foreign public officials in Latvia, Tunisia and Malaysia.  In Malaysia, two executives of Alstom's client company, state-licensed TTPC (Teknologi Tenaga Perlis Consortium Sdtn Bhd) were deemed to be beneficiaries of consulting contracts signed by Alstom with offshore companies in connection with the PERLIS gas turbines contract.  One of the beneficiaries of the bribe payments was also a local politician in the area where the power station was to be built. "In return for payment, they influenced both the award of contracts as part of the project in previous years (including securing of financing) and ensured that any difficulties encountered by the client in the performance of the contract were resolved in favor of ALSTOM." Alstom Schweiz was fined CHF 2.5 million; a compensatory claim of CHF 36.4 million was also imposed. The parent company Alstom S.A. paid the CHF 1 million in reparation, a third of which was to be used for International Committee of the Red Cross projects in Latvia. (Sources:  Office of the Swiss Attorney General, Summary punishment order in the invesitgation of defendant Alstom Network Schweiz AG, November 22, 2011 and The Federal Authorities of the Swiss Confederation, "Criminal proceedings against Alstom entities are brought to a close," November 22, 2011.)

According to the November 2011 press release by The Federal Authorities of the Swiss Confederation, Alstom Network Schweiz AG was convicted under article 102 of the Swiss Criminal Code of not having taken "all necessary and reasonable organizational precautions to prevent bribery of foreign public officials"; proceedings against the French parent company Alstom S.A. were dismissed based on art. 53 of the Swiss Criminal Code, imposing costs of proceedings and payment of reparations.  (Source: The Federal Authorities of the Swiss Confederation, "Criminal proceedings against Alstom entities are brought to a close," November 22, 2011.)